A direct selling company distributes and provides its products and services to the consumer without (involving) the participation of intermediaries involved in the traditional channel of sale.
Since this model eradicates the intermediaries, it allows the manufacturers to distribute a certain amount (commission) to the independent agents (also known as members, distributors, agents) depending upon their sales volume.
It is often that a direct selling company does not do traditional advertisement and primarily depends on the mouth to mouth publicity by its users. This no advertising agenda not only does a cost-cutting for the company but also equips it for making payments of commission to its member.
Top Ten Direct Selling Companies in India in 2019
So, for your ease, here is the list of top 10 direct selling companies in India. The list is ranked on the basis of their revenue in 2017.
Amway is a well-known and respected brand in the Indian direct selling sector. Amway’s customers often get emotionally attached to the firm as the products and the company’s culture has been presented in an elegant way. This direct selling company earned a revenue of $9.5 billion in 2015 by selling its products to the world. The current revenue of this MLM company stands at $8.8 billion in 2018.
Founded in 1959 by joint founders Van and Rich, the company has become one of the most successful direct selling companies in the United States as well. Some of their popular products include Amway Queen, Nutrilite etc. Amway entered the Indian market in 1998. The company also sells its own water purifiers under the brand name eSpring apart from various products in categories like beauty, health and cleanliness.
Revenue (India) – ₹1,800 crores
Founded –November 1959
Headquarters – Ada Township, Michigan, United States
Indian Office –Ground Floor, Elegance Tower, Plot No. 8 Non-Hierarchical Commercial Centre, Jasola, New Delhi
Founders –Richard DeVos, Jay Van Andel
Herbalife is a US-based multi-level marketing company established in February 1980 by Mark Hughes. In 2019, the company has expanded its portfolio to a range of products in categories like healthcare, skincare, nutrition, fitness supplements, protein snacks and vegetarian and allergen-free food.
Boasting a strong network of 32 lakh distributors around the world, the company can be seen sponsoring athletes, sports events and teams around the world. Herbalife entered India in 1999 and has expanded rapidly since then. The company clocked $4.43 billion in worldwide revenue in 2017. The company has also started the Herbalife Family Foundation (HFF) which supports children with nutrition-deficiency.
Revenue (India) – ₹1,519 crores
Founded – February 1980
Headquarters –Los Angeles, California, United States
Indian Office –Pardhanani Wilshire, No. 14, Commissariat Road, Bengaluru, Karnataka
Founders – Mark R. Hughes
Oriflame is a well-known and prestigious name in the cosmetics industry in India. The company was founded in 1967 in Switzerland and offers products ranging from food supplements and beauty products to skincare and healthcare segments. This MLM company gained momentum in the early 2000s and became one of the leading and highly popular direct selling companies of beauty products in the world.
The company launched its operations in India in 1996. This network marketing company in India has been selling products through its network of 2.5 lakh direct sellers. The company recorded a $428 million in worldwide revenues. It has two manufacturing units in India in Noida and Roorkee. It operates across 1,300 cities, mainly metros and Tier II cities.
Revenue (India) – ₹1,500 crores
Founded – 1967
Headquarters –Schaffhausen, Switzerland
Indian Office –Ground Floor, M-10, South Extension, Part-II, New Delhi
Founders –Robert af Jochnick, Jonas af Jochnick
This Chennai-based company takes the number one position in our list of top ten direct selling companies in India in 2019. Founded in 2013, this MLM company offers various lifestyle products and sells it directly to the customers. The company boasts an experience of 16 years in the field of direct selling and multi-level marketing.
Through a chain of distributors, the company sells high-quality products in categories like lifestyle, nutrition, wellness and healthcare. The distributors receive a commission whenever a product is sold. Mi Lifestyle is a member of Federation of Indian Chambers of Commerce & Industry (FICCI) and Federation of Direct Selling Association (FDSA).
Revenue (India) – ₹1,200 crores
Founded –March 2013
Headquarters – Chennai, Tamil Nadu, India
Indian Office – 2nd Floor, Lanco House (No-25), G.N.Chetty Road, T. Nagar, Chennai, Tamil Nadu
Founders – Manmohan Singh Kishore Kumar, Hackeem Abdul Rahim and Kolla Sathya Narayana
Avon is one of the most popular and oldest direct selling companies in the world. Founded in 1886, the brand manufactures and sells beauty and personal care products. The company recorded a $5.5 billion worldwide revenue in 2018. The company uses multiple direct selling techniques to boost its sells.
The company’s CEO is Jan Zijderveld, who was appointed to the position in February 2018. von supports women’s empowerment, entrepreneurship and well-being and has donated over $1billion to women’s causes through Avon and the Avon Foundation. The company launched its operations in Indian in 1995.
Revenue (India) – ₹750 crores
Founded – 1886
Headquarters –London, United Kingdom
Indian Office –401, Paras Trade Centre, Sector-2 Gwal Pahari, Gurgaon- Faridabad Expressway, Gurgaon
Founders –David H. McConnell
Vestige Marketing Pvt. Ltd, the legal entity that operates Vestige, the direct selling company in India came into existence in June 2004. Vestige is an ISO 9001-2015 certified MLM company in India that sells various products like Health Supplements, Air Purifier, Ayurveda, Health Food, Home Care, Personal Care, Oral Care, Colour Cosmetics, Premium Skin Care, Men’s Grooming, Agri Products and Business Tools.
With over 2500+ online and offline sales outlets pan India, multiple international offices and several distributor centres, Vestige has been building a widespread network of distributors, which is constantly growing every year. Vestige operates multiple brands like Ayusante, Enerva, Invigo, Lite House, Zeta, Hyvest, Assure, Dentassure, Mistal of Milan, Skin Formula 9, Truman, Agri82 and Vescare.
Revenue (India) – ₹679 crores
Founded – June 2004
Headquarters –New Delhi, Delhi, India
Indian Office –A-89, Okhla Industrial Area Phase – II, New Delhi
Founders –Gautam Bali, Deepak Sood, and Kanwar Bir Singh
Forever Living Products International aka FLPI is a multi-level marketing company that manufactures aloe vera drinks as well as cosmetics made from bee-derivatives. Founded in 1978 by Rex Maughan, the company has established itself into a prime manufacturer of nutritional supplements and personal care products. The company’s headquarters are in Scottsdale, United States.
In 1983, the company was named No. 6 on Inc. Magazine’s annual Inc. 500 list of the fastest-growing private companies in the United States. The company entered the Indian market in 2005. With more than 4,000 employees and a global network of 93 lakh distributors, this direct selling company clocked $4.45 billion in worldwide revenues in 2010
Revenue (India) – ₹500 crores
Founded – 1978
Headquarters –Scottsdale, Arizona, United States
Indian Office –Forever Plaza, The Silver Mist, 74, Hill Road, Bandra (West), Mumbai, Maharashtra
Founders –Rex Maughan
Modicare’s core philosophy has remained unfalteringly consistent since its inception in 1973 – to enhance, engage and empower the lives of people. This direct selling company manufactures products in various segments like wellness, skincare, personal care, home care, food & beverages. The company also manufactures e-vapes.
Founded by Krishan Kumar Modi, the business is now taken over by his son Samir Modi who was appointed on 01 February 1992. Samir Modi has been on the board for more than 27 years. The company is planning to expand in international markets like the Middle East and Europe.
Revenue (India) – ₹259 crores
Founded – July 1973
Headquarters –New Delhi, Delhi, India
Indian Office –5, Community Centre, New Friends Colony, New Delhi
Founders –Krishan Kumar Modi
RCM is another renowned direct selling company in India. It has more than 1 crore direct selling partners across the country. Unlike all other network marketing companies, RCM focuses on grocery items, cosmetics and garments. This direct selling company offers more than 750 products.
A direct seller can earn incentive by referring people to purchase the company’s product. The person interested in joining is required to apply online on the application form available on the company’s website. The details of who has proposed the applicant with the necessary details are to be filled in the column of the proposer and the detail of sponsor in the sponsor column.
Revenue (India) – ₹700 crores
Founded – April 1988
Headquarters – Bhilwara, Rajasthan, India
Indian Office –RCM World, SPL-6, RIICO Growth Centre, Swaroopganj, Bhilwara, Rajasthan
Founders – Tilok Chhabra Chand
Unicity is another name in this top 10 direct selling companies in India list. Founded in 1999 in the United States, the company worked hard to promote natural products. The company offers a range of nutritional supplements and personal care products made from natural ingredients. Two of the best-selling supplements from Unicity are Bios Life Slim and Bios Life.
With more than 400 distributors around the world, the company also offers weight loss products and green tea. The company entered the Indian direct selling market in 2010. It clocked $180 million in worldwide revenues in 2015. It was recognized as one of the Top 500 Privately-held Businesses in the United States—ranked 87th on the national level.
Revenue (India) – Unknown
Founded – 1972
Headquarters –Orem, Utah, United States
Indian Office –5th Floor, Kimatrai Building, 77/79, Maharshi Karve Road, Marine Lines, Mumbai, Maharashtra
Chairman – Stewart Hughes
History of MLM
The roots of MLM lies in America, in early 1800s various travelling salespersons [also known as canvassers, peddlers, hawkers and drummers] started creating their own trained sales organizations for e.g. Asa Candler a peddler bought the formula of Coca-Cola syrup from pharmacist John Pemberton for $2,300 in 1886 and built a sales team to sell the syrup in restaurant and other beverage junctions.
The hardships of the Great Depression provoked the former vice president (sales) of Fuller Bush Company Mr Frank Stanely Beveridge and Catherine L ‘O’ Brien to start Stanley Home Products. They offered daily used household products.
Few of the sellers from their company started giving demonstrations to clubs and organisations rather than individuals this, gave birth to the so-called “PARTY PLANS”. In a party plan, a seller invites friends, families and other acquaintances to their house and give demonstrations.